Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024 (52 of 2024)

Schedule 7   Non-arm's length expenses of superannuation funds

Income Tax Assessment Act 1997

1   Subsection 295-545(2)

Repeal the subsection, substitute:

(2) If an entity is not of a kind referred to in paragraph 295-550(8)(a) (about certain small entities), the non-arm's length component for an income year is the entity's *non-arm's length income for that year less any deductions to the extent that they are attributable to that income.

(2A) If the entity is of a kind referred to in paragraph 295-550(8)(a) (about certain small entities), the non-arm's length component for an income year is the lesser of:

(a) the sum of:

(i) each amount of the entity's *non-arm's length income under subsection 295-550(1), (2), (4) or (5) for that year less any deductions to the extent that they are attributable to that income; and

(ii) each amount of the entity's non-arm's length income under subsection 295-550(8) or (9) for that year; and

(b) the entity's taxable income for the income year:

(i) less the contributions that are included in the entity's assessable income under Subdivision 295-C for the income year; and

(ii) plus any deductions to the extent that they are attributable to those contributions.